Kimberly-Clark Stock Discussion

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The company's CFO, Nelson Urdaneta, expressed confidence in the company's path to consistent growth and strong margin expansion as they focus on areas of competitive advantage. The company's shares edged up 0.66% in premarket trading on Wednesday.

Kimberly-Clark's underlying earnings power is deemed strong despite unusual items impacting profit. High cash conversion is a positive, with profit expected to rise if unusual expenses don't recur.

Despite Kimberly-Clark's high ROCE, its trend is concerning as reinvestment for growth hasn't significantly boosted sales. This could explain the modest stock gain over the past five years. Investors seeking a multi-bagger might find better opportunities elsewhere.

Despite a high P/E ratio, investors are holding onto Kimberly-Clark due to its promising growth prospects. Therefore, a drastic stock price drop does not seem likely in the near future.

BofA analysts question Kimberly-Clark's strategy to boost organic sales via price hikes due to economic constraints steering consumers to private labels. They remain hopeful for Clorox's recovery, despite possible mild recession in early 2024.